Fortensky Construction planned to produce 275,000 units using 34,375 machine hours. Actual output was 290,000 units using 37,425 machine hours. Fortensky's volume variance
A)was favourable.
B)was unfavourable.
C)was zero.
D)cannot be determined from the information given.

Question

Quizplus · Accepted Answer

The volume variance measures the difference between budgeted and actual output levels. In this case, Fortensky Construction produced 15,000 more units than planned, which would result in a favorable volume variance.

Fortensky Construction Planned to Produce 275,000 Units Using 34,375 Machine